Question
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q,
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 - 15Q, where Q = Q1+ Q2. The marginal cost associated with producing in the two plants are MC1= 3Q1and MC2= 2Q2. How much output should be produced in plant 1 in order to maximize profits?
Can you please provide a breakdown for solving this problem?
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International Economics
Authors: Dominick Salvatore
12th edition
9781118955727, 1118955765, 1118955722, 978-1118955765
